AI Projection Levels

11월 24일

Projection Levels – AI-Driven Volatility Projection Grid

Projection Levels is a quantitative market geometry engine that transforms raw volatility into a structured, multi-layered projection grid.
It is designed to help traders identify natural price reaction corridors, exhaustion zones, and expansion targets using a volatility-normalized mathematical framework.

This is not a random fixed indicator – it behaves like a deterministic, AI-style volatility interpreter that adapts to changing market conditions.

Mathematical Core (Simplified)

The system is built around a Volatility Projection Field (VPF) defined conceptually as:

Px = O + (ATR_prev * M * lambda_x)

Where:

O = session anchor (adaptive open)

ATR_prev = volatility memory from the previous regime

M = projection multiplier

lambda_x = fractal expansion ratios:
{0.25, 0.50, 0.75, 1.00, 1.25, 1.50, 1.75, 2.00}

These ratios behave like probabilistic expansion bands derived from historical volatility clustering in financial time series.

Cluster Stabilization Layer

Markets don’t respect random decimals – they tend to gravitate around liquidity clusters.

To reflect this, the indicator applies a discrete price quantization filter:

Q(x) = round( x / step ) * step

Where:

step = user-defined cluster size (for example: 500 points for index futures)

This compresses prices into liquidity-aligned structural clusters, creating “price magnets” where:

Dealers tend to hedge

Liquidity concentrates

Traps and fakeouts often form

Breakouts can accelerate once clusters are left behind

Why It Feels “AI-Driven”

Pine Script cannot run deep neural networks directly, but this tool emulates AI-like behavior via:

Recursive volatility normalization

Multi-level fractal expansion logic

Cluster-aligned price projections

Dynamic label overlays that tag key expansion zones

Functionally, it behaves like a rule-based inference engine operating on volatility memory and price geometry.

Structure of the System

You get three main “intelligent” layers:

1) Core Projection Zone (±25% to ±100%)

Primary behavioral framework:

Intraday reaction zones

Mean-reversion traps

Session acceptance / rejection areas

2) Expansion Zones (125% to 200%)

Extended volatility bands:

Potential exhaustion territories

Trend continuation “fuel” zones

Breakout overextension regions

Often used by momentum and breakout traders to frame extreme moves.

3) Adaptive Label Tracking

Each level is attached to a moving label that follows the latest bar.
This keeps the projection grid readable, even on fast intraday charts.

Designed For

Futures and index traders

Intraday scalpers and day traders

Volatility-based swing traders

Systematic and rules-driven traders building frameworks

Works especially well on:

SPX, NASDAQ, BTC & major crypto indices, NIFTY and liquid futures contracts.

Philosophy Note

Markets move in alternating phases of volatility expansion and compression.
This indicator does not “predict the future” – it maps probabilistic volatility geometry around the current session anchor.

It is best used to ask questions such as:

Are we in compression or expansion?

Is this zone more likely to act as acceptance or rejection?

Are we approaching a structurally stretched region?

Risk Disclaimer

This indicator is a visual and analytical tool only.
It does not provide direct buy/sell signals, financial advice, or guaranteed outcomes.

Trading and investing in financial markets involves substantial risk, including the risk of losing part or all of your capital.
All projections, levels, and zones shown by this script are based on mathematical and volatility-based calculations and should be treated strictly as decision-support, not a prediction engine.

The creator of this script is not responsible for any trading losses, financial damage, or decisions made using this tool.
By using this script, you agree that you:

Understand the risks of trading

Use this indicator at your own discretion and responsibility

Accept that past behavior of levels does not guarantee future performance

Closed-Source Notice

This script contains proprietary projection logic.
The formulas shown above are conceptual summaries for educational clarity.
Actual internal weighting, smoothing, and normalization methods remain closed-source and protected.

11월 24일

릴리즈 노트

Minor bug fix

11월 25일

릴리즈 노트

Changed higher projection levels from circles to line bars